UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2015

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            

Commission File Number: 1-8601

CreditRiskMonitor.com, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
 
36-2972588
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

704 Executive Boulevard, Suite A
Valley Cottage, New York
 
10989
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (845) 230-3000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes     No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes     No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
                Accelerated filer
Non-accelerated filer
     Smaller reporting company ☑

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).
Yes     No
 
APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:
Common stock $.01 par value – 8,207,887 shares outstanding as of August 3, 2015.
 

 

CREDITRISKMONITOR.COM, INC.
INDEX

   
Page
     
PART I. FINANCIAL INFORMATION
 
     
 
Item 1. Financial Statements
 
     
 
2
     
 
3
     
 
4
     
 
5
     
 
6
     
 
8
     
 
12
     
PART II. OTHER INFORMATION
 
     
 
12
     
13
 
1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
JUNE 30, 2015 AND DECEMBER 31, 2014
 
   
June 30,
2015
   
December 31,
2014
 
   
(Unaudited)
   
(Note 1)
 
         
ASSETS
       
Current assets:
       
Cash and cash equivalents
 
$
7,916,225
   
$
7,529,468
 
Marketable securities
   
1,344,107
     
1,363,439
 
Accounts receivable, net of allowance
   
1,617,270
     
2,078,710
 
Other current assets
   
824,048
     
516,585
 
                 
Total current assets
   
11,701,650
     
11,488,202
 
                 
Property and equipment, net
   
411,824
     
337,339
 
Goodwill
   
1,954,460
     
1,954,460
 
Prepaid and other assets
   
40,780
     
23,682
 
                 
Total assets
 
$
14,108,714
   
$
13,803,683
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Deferred revenue
 
$
7,796,280
   
$
7,612,836
 
Accounts payable
   
83,040
     
137,258
 
Accrued expenses
   
1,096,056
     
1,230,966
 
                 
Total current liabilities
   
8,975,376
     
8,981,060
 
                 
Deferred taxes on income
   
720,867
     
743,691
 
Other liabilities
   
364
     
2,546
 
                 
Total liabilities
   
9,696,607
     
9,727,297
 
                 
Stockholders’ equity:
               
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued
   
--
     
--
 
Common stock, $.01 par value; authorized 25,000,000 shares; issued and outstanding 8,201,387 shares and 8,055,365, respectively
   
82,014
     
80,553
 
Additional paid-in capital
   
29,338,706
     
29,176,040
 
Accumulated deficit
   
(25,008,613
)
   
(25,180,207
)
                 
Total stockholders’ equity
   
4,412,107
     
4,076,386
 
                 
Total liabilities and stockholders’ equity
 
$
14,108,714
   
$
13,803,683
 

See accompanying condensed notes to financial statements.
 
2

CREDITRISKMONITOR.COM, INC.
STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2015 AND 2014
(Unaudited)

   
2015
   
2014
 
         
Operating revenues
 
$
3,107,106
   
$
2,998,010
 
                 
Operating expenses:
               
Data and product costs
   
1,170,236
     
1,021,519
 
Selling, general and administrative expenses
   
1,639,430
     
1,657,116
 
Depreciation and amortization
   
60,438
     
57,240
 
                 
Total operating expenses
   
2,870,104
     
2,735,875
 
                 
Income from operations
   
237,002
     
262,135
 
Other income, net
   
738
     
13,247
 
                 
Income before income taxes
   
237,740
     
275,382
 
Provision for income taxes
   
(102,667
)
   
(58,613
)
                 
Net income
 
$
135,073
   
$
216,769
 
                 
Net income per share of common stock:
               
                 
Basic
 
$
0.02
   
$
0.03
 
Diluted
 
$
0.02
   
$
0.03
 
                 
Weighted average number of common shares outstanding:
               
                 
Basic
   
8,163,302
     
7,959,200
 
Diluted
   
8,310,376
     
8,211,239
 

See accompanying condensed notes to financial statements.
 
3

CREDITRISKMONITOR.COM, INC.
STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014
(Unaudited)

   
2015
   
2014
 
         
Operating revenues
 
$
6,177,312
   
$
5,967,398
 
                 
Operating expenses:
               
Data and product costs
   
2,399,972
     
2,322,964
 
Selling, general and administrative expenses
   
3,370,243
     
3,403,526
 
Depreciation and amortization
   
113,185
     
113,911
 
                 
Total operating expenses
   
5,883,400
     
5,840,401
 
                 
Income from operations
   
293,912
     
126,997
 
Other income, net
   
5,694
     
21,822
 
                 
Income before income taxes
   
299,606
     
148,819
 
Provision for income taxes
   
(128,012
)
   
(71,241
)
                 
Net income
 
$
171,594
   
$
77,578
 
                 
Net income per share of common stock:
               
                 
Basic
 
$
0.02
   
$
0.01
 
Diluted
 
$
0.02
   
$
0.01
 
                 
Weighted average number of common shares outstanding:
               
                 
Basic
   
8,112,830
     
7,958,926
 
Diluted
   
8,271,619
     
8,223,004
 

See accompanying condensed notes to financial statements.
 
4

CREDITRISKMONITOR.COM, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014
(Unaudited)

   
2015
   
2014
 
         
Cash flows from operating activities:
       
Net income
 
$
171,594
   
$
77,578
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
   
113,185
     
113,911
 
Stock-based compensation
   
63,672
     
63,938
 
Unrealized loss on marketable securities
   
19,332
     
4,432
 
Tax benefit from stock option plans
   
(67,371
)
   
(596
)
Deferred income taxes
   
(22,824
)
   
(57,481
)
Deferred rent
   
(2,182
)
   
(629
)
Loss in retirement of fixed assets
   
--
     
97
 
Changes in operating assets and liabilities:
               
Accounts receivable
   
461,440
     
402,677
 
Other current assets
   
(240,092
)
   
(195,087
)
Prepaid and other assets
   
(17,098
)
   
(16,424
)
Deferred revenue
   
183,444
     
280,426
 
Accounts payable
   
(54,218
)
   
(10,844
)
Accrued expenses
   
(134,910
)
   
137,341
 
                 
Net cash provided by operating activities
   
473,972
     
799,339
 
                 
Cash flows from investing activities:
               
Purchase of property and equipment
   
(187,670
)
   
(58,536
)
                 
Net cash used in investing activities
   
(187,670
)
   
(58,536
)
                 
Cash flows from financing activities:
               
Proceeds from exercise of stock options
   
33,084
     
--
 
Tax benefits from stock option plans
   
67,371
     
596
 
                 
Net cash provided by financing activities
   
100,455
     
596
 
                 
Net increase in cash and cash equivalents
   
386,757
     
741,399
 
Cash and cash equivalents at beginning of period
   
7,529,468
     
6,649,432
 
                 
Cash and cash equivalents at end of period
 
$
7,916,225
   
$
7,390,831
 

See accompanying condensed notes to financial statements.
 
5

CREDITRISKMONITOR.COM, INC.
CONDENSED NOTES TO FINANCIAL STATEMENTS
(Unaudited)

(1) Basis of Presentation

The accompanying unaudited condensed financial statements of CreditRiskMonitor.com, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosure required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed financial statements reflect all material adjustments, including normal recurring accruals, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented, and have been prepared in a manner consistent with the audited financial statements for the fiscal year ended December 31, 2014.

The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2014 balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K.

(2) Stock-Based Compensation

The Company applies ASC 718, “Compensation-Stock Compensation” (“ASC 718”) to account for stock-based compensation.

The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the three and six months ended June 30:

   
3 Months Ended
June 30,
   
6 Months Ended
June 30,
 
 
2015
   
2014
   
2015
   
2014
 
                 
Data and product costs
 
$
2,945
   
$
2,945
   
$
5,890
   
$
5,890
 
Selling, general and administrative expenses
   
29,316
     
29,024
     
57,782
     
58,048
 
                                 
   
$
32,261
   
$
31,969
   
$
63,672
   
$
63,938
 

(3) Other Recently Issued Accounting Standards

The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of June 30, 2015 that will become effective in subsequent periods; however, management does not believe that any of those pronouncements would have significantly affected the Company’s financial accounting measurements or disclosures had they been in effect during the interim periods for which financial statements are included in this quarterly report. Management also believes those pronouncements will not have a significant effect on the Company’s future financial position or results of operations.
 
6

(4) Fair Value Measurements

The Company records its financial instruments that are accounted for under ASC 320, “Investments-Debt and Equity Securities” at fair value. The determination of fair value is based upon the fair value framework established by ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable, either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants.

The Company’s cash, cash equivalents and marketable securities are stated at fair value. The carrying value of accounts receivable, other current assets, accounts payable and other current liabilities approximates fair market value because of the short maturity of these financial instruments.

The Company’s cash equivalents and marketable securities are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Marketable securities include U.S. government notes and mutual funds.

The table below sets forth the Company’s cash and cash equivalents and marketable securities as of June 30, 2015 and December 31, 2014, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

   
June 30, 2015
   
December 31, 2014
 
   
Level 1
   
Level 2
   
Level 3
   
Total
   
Total
 
                     
Cash and cash equivalents
 
$
7,916,225
   
$
-
   
$
-
   
$
7,916,225
   
$
7,529,468
 
Marketable securities
   
1,344,107
     
-
     
-
     
1,344,107
     
1,363,439
 
                                         
Total
 
$
9,260,332
   
$
-
   
$
-
   
$
9,260,332
   
$
8,892,907
 

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of either June 30, 2015 or December 31, 2014.

(5) Net Income per Share

Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options:

   
3 Months Ended
June 30,
   
6 Months Ended
June 30,
 
   
2015
   
2014
   
2015
   
2014
 
                 
Weighted average number of common shares outstanding – basic
   
8,163,302
     
7,959,200
     
8,112,830
     
7,958,926
 
Potential shares exercisable under stock option plans
   
315,000
     
444,500
     
303,750
     
471,750
 
LESS: Shares which could be repurchased under treasury stock method
   
(167,926
)
   
(192,461
)
   
(144,961
)
   
(207,672
)
                                 
Weighted average number of common shares outstanding – diluted
   
8,310,376
     
8,211,239
     
8,271,619
     
8,223,004
 

Potential common shares of 138,500 and 202,000 related to the Company's outstanding stock options were excluded from the computation of diluted income per share for the 3 months ended June 30, 2015 and 2014, respectively, as inclusion of these shares would have been anti-dilutive. For the 6 months ended June 30, 2015 and 2014, the computation of diluted net income per share excludes the effects of the assumed exercise of 164,750 and 175,250 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.
 
7

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business Environment

Despite the continued strengthening of the U.S. economy, the continuing uncertainty in the worldwide financial system has negatively impacted general business conditions. It is possible that a weakened economy could adversely affect our clients’ need for credit information, or even their solvency, but we cannot predict whether or to what extent this will occur.

Our strategic priorities and plans for 2015 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. Global market conditions, however, may affect the level and timing of resources deployed in pursuit of these initiatives in 2015.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of June 30, 2015 and December 31, 2014 (dollars in thousands):

   
June 30,
2015
   
December 31,
2014
 
Cash, cash equivalents and marketable securities
 
$
9,260
   
$
8,893
 
Accounts receivable, net
 
$
1,617
   
$
2,079
 
Working capital
 
$
2,726
   
$
2,507
 
Cash ratio
   
1.03
     
0.99
 
Quick ratio
   
1.21
     
1.22
 
Current ratio
   
1.30
     
1.28
 

The Company has invested some of its excess cash in debt instruments of the United States Government and mutual funds. All highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents, while those with maturities in excess of three months when purchased are reflected as marketable securities.

As of June 30, 2015, the Company had $9.26 million in cash, cash equivalents and marketable securities, an increase of approximately $367,000 from December 31, 2014. The reason for this increase was that cash generated by operating activities ($474,000) and the cash provided by financing activities ($100,000) exceeded the cash used to acquire property and equipment ($188,000).

The Company’s cash provided by operating activities exceeded its net income primarily due to the 22% decrease in accounts receivable during the six month period. Additionally, the main component of current liabilities at June 30, 2015 is deferred revenue of $7.80 million, which should not require significant future cash outlay other than the cost of preparation and delivery of the applicable commercial credit reports which cost much less than the deferred revenue shown. The deferred revenue is recognized as income over the subscription term, which approximates twelve months. The Company has no bank lines of credit or other currently available credit sources.

The Company believes that its existing balances of cash, cash equivalents, marketable securities and cash generated from operations will be sufficient to satisfy its currently anticipated cash requirements through at least the next 12 months and the foreseeable future. Moreover, the Company has been cash flow positive for 9 of the last 10 fiscal years and has no long-term debt. However, the Company’s liquidity could be negatively affected if it were to make an acquisition or license products or technologies, which may necessitate the need to raise additional capital through future debt or equity financing. Additional financing may not be available at all or on terms favorable to the Company.
 
8

Off-Balance Sheet Arrangements

The Company is not a party to any off-balance sheet arrangements.

Results of Operations

    3 Months Ended June 30,  
   
2015
   
2014
 
   
Amount
   
% of Total
Operating
Revenues
   
Amount
   
% of Total
Operating
Revenues
 
                 
Operating revenues
 
$
3,107,106
     
100.00
%
 
$
2,998,010
     
100.00
%
                                 
Operating expenses:
                               
Data and product costs
   
1,170,236
     
37.66
%
   
1,021,519
     
34.07
%
Selling, general and administrative expenses
   
1,639,430
     
52.76
%
   
1,657,116
     
55.28
%
Depreciation and amortization
   
60,438
     
1.95
%
   
57,240
     
1.91
%
Total operating expenses
   
2,870,104
     
92.37
%
   
2,735,875
     
91.26
%
                                 
Income from operations
   
237,002
     
7.63
%
   
262,135
     
8.74
%
Other income, net
   
738
     
0.02
%
   
13,247
     
0.44
%
                                 
Income before income taxes
   
237,740
     
7.65
%
   
275,382
     
9.18
%
Provision for income taxes
   
(102,667
)
   
(3.30
%)
   
(58,613
)
   
(1.96
%)
                                 
Net income
 
$
135,073
     
4.35
%
 
$
216,769
     
7.22
%

Operating revenues increased $109,096, or 4%, for the three months ended June 30, 2015 compared to the second quarter of fiscal 2014. This overall revenue growth resulted from an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased $148,717, or 15%, for the second quarter of 2015 compared to the same period of fiscal 2014. This increase was due primarily to the higher cost of third-party content, as last year the amount reported was reduced by the refund received during the second quarter for sales tax paid on third party content covering the 3 years ended August 2013, partially offset by the lower cost associated with the outsourcing of certain data entry tasks, as less tasks have been outsourced.

Selling, general and administrative expenses decreased $17,686, or 1%, for the second quarter of fiscal 2015 compared to the same period of fiscal 2014. This decrease was due to lower salary and related employee benefits, due to turnover, as well as lower professional fees.

Depreciation and amortization increased $3,198, or 6%, for the second quarter of fiscal 2015 compared to the same period of fiscal 2014. This increase was due to a higher depreciable asset base reflecting the replacement of some web servers that have been fully depreciated.

Other income, net decreased $12,509 for second quarter of fiscal 2015 compared to the same period last year. This decrease was due to a larger negative mark-to-market adjustment recorded in this year’s second quarter.

Provision for income taxes increased $44,054 for the second quarter of fiscal 2015 compared to the same period of fiscal 2014. This increase was due to the Company having higher permanent differences related to stock options that increased taxable income in 2015 compared to 2014.
 
9

   
6 Months Ended June 30,
 
   
2015
   
2014
 
   
Amount
   
% of Total
Operating
Revenues
   
Amount
   
% of Total
Operating
Revenues
 
                 
Operating revenues
 
$
6,177,312
     
100.00
%
 
$
5,967,398
     
100.00
%
                                 
Operating expenses:
                               
Data and product costs
   
2,399,972
     
38.85
%
   
2,322,964
     
38.93
%
Selling, general and administrative expenses
   
3,370,243
     
54.56
%
   
3,403,526
     
57.03
%
Depreciation and amortization
   
113,185
     
1.83
%
   
113,911
     
1.91
%
Total operating expenses
   
5,883,400
     
95.24
%
   
5,840,401
     
97.87
%
                                 
Income from operations
   
293,912
     
4.76
%
   
126,997
     
2.13
%
Other income, net
   
5,694
     
0.09
%
   
21,822
     
0.37
%
                                 
Income before income taxes
   
299,606
     
4.85
%
   
148,819
     
2.50
%
Provision for income taxes
   
(128,012
)
   
(2.07
%)
   
(71,241
)
   
(1.19
%)
                                 
Net income
 
$
171,594
     
2.78
%
 
$
77,578
     
1.31
%
 
Operating revenues increased $209,914, or 4%, for the six months ended June 30, 2015 compared to the first half of fiscal 2014. This overall revenue growth resulted from an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased $77,008, or 3%, for the first six months of 2015 compared to the same period of fiscal 2014. This increase was due primarily to the higher cost of third-party content, as last year the amount reported was reduced by the refund received during the second quarter for sales tax paid on third party content covering the 3 years ended August 2013, partially offset by the lower cost associated with the outsourcing of certain data entry tasks, as less tasks have been outsourced.

Selling, general and administrative expenses decreased $33,283, or 1%, for the first six months of fiscal 2015 compared to the same period of fiscal 2014. This decrease was due to lower professional and recruiting fees, partially offset by higher salary and related employee benefits, due to the implementation of new commission programs.

Depreciation and amortization decreased $726, or 1%, for the first six months of fiscal 2015 compared to the same period of fiscal 2014. This decrease was due to a lower average depreciable asset base for the period reflecting the continued use of certain items that have been fully depreciated, partially offset by depreciation taken on new web servers purchased during the second quarter.

Other income, net decreased $16,128 for first six months of fiscal 2015 compared to the same period last year. This decrease was due to a larger negative mark-to-market adjustment recorded in this year’s first quarter.

Provision for income taxes increased $56,771 for the first six months of fiscal 2015 compared to the same period of fiscal 2014. This increase was due to the Company having higher pre-tax income because of the reasons enumerated above.

Future Operations

The Company over time intends to expand its operations by expanding the breadth and depth of its product and service offerings and introducing new and complementary products. Gross margins attributable to new business areas may be lower than those associated with the Company’s existing business activities.
 
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As a result of the evolving nature of the markets in which it competes, the Company’s ability to accurately forecast its revenues, gross profits and operating expenses as a percentage of net sales is limited. The Company’s current and future expense levels are based largely on its investment plans and estimates of future revenues. To a large extent these costs do not vary with revenue. Sales and operating results generally depend on the Company’s ability to attract and retain customers and the volume of and timing of customer subscriptions for the Company’s services, which are difficult to forecast. The Company may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues in relation to the Company’s planned expenditures would have an immediate adverse effect on the Company’s business, prospects, financial condition and results of operations. Further, as a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service, marketing or acquisition decisions that could have a material adverse effect on its business, prospects, financial condition and results of operations.

Achieving greater profitability depends on the Company’s ability to generate and sustain increased revenue levels. The Company believes that its success will depend in large part on its ability to (i) increase its brand awareness, (ii) provide its customers with outstanding value, thus encouraging customer renewals, and (iii) achieve sufficient sales volume to realize economies of scale. Accordingly, the Company intends to continue to increase the size of its sales force and service staff, and to invest in product development, operating infrastructure, marketing and promotion. The Company believes that these expenditures will help it to sustain the revenue growth it has experienced over the last several years. We anticipate that sales and marketing expenses will increase in dollar amount and as a percentage of revenues during the remainder of 2015 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses and data costs will also continue to increase in dollar amount and may increase as a percentage of revenues during the remainder of 2015 and future periods because it expects to employ more development personnel on average compared to prior periods, obtain additional data and build the infrastructure required to support the development of new and improved products and services. However, as these expenditures are largely discretionary in nature, the Company expects that the actual amounts incurred will be in line with its projections of future cash flows in order not to negatively impact its future liquidity and capital needs. There can be no assurance that the Company will be able to achieve these objectives within a meaningful time frame.

The Company expects to experience fluctuations in its future quarterly operating results due to a variety of factors, some of which are outside the Company’s control. Factors that may adversely affect the Company’s quarterly operating results include, among others, (i) the Company’s ability to retain existing customers, attract new customers at a steady rate and maintain customer satisfaction, (ii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iii) the development of new services and products by the Company and its competitors, (iv) price competition, (v) the Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vi) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (vii) the Company’s ability to attract and retain personnel in a timely and effective manner, (viii) the Company’s ability to manage effectively its development of new business segments and markets, (ix) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (x) technical difficulties, system downtime or Internet brownouts, (xi) the amount and timing of operating costs and capital expenditures relating the Company’s business, operations and infrastructure, (xii) governmental regulation and taxation policies, (xiii) disruptions in service by common carriers due to strikes or otherwise, (xiv) risks of fire or other casualty, (xv) litigation costs or other unanticipated expenses, (xvi) interest rate risks and inflationary pressures, and (xvii) general economic conditions and economic conditions specific to the Internet and online commerce.

Due to the foregoing factors, the Company believes that period-to-period comparisons of its revenues and operating results are not necessarily meaningful and should not be relied on as an indication of future performance.
 
11

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements, including statements regarding future prospects, industry trends, competitive conditions and litigation issues. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “expects”, “anticipates”, “plans” or words of similar meaning are intended to identify forward-looking statements. This notice is intended to take advantage of the “safe harbor” provided by the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Among others, factors that could cause actual results to differ materially from the Company’s beliefs or expectations are those listed under “Results of Operations” and other factors referenced herein or from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission reports. The Company disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, a future event or otherwise.
 
Item 4.
Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
 
PART II.
OTHER INFORMATION

Item 6.
Exhibits

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101
The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) the Balance Sheets, (ii) the Statements of Income, (iii) the Statements of Cash Flows, and (iv) the Notes to Financial Statements.
 
12

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
CREDITRISKMONITOR.COM, INC.
 
(REGISTRANT)
     
Date: August 14, 2015
By:
/s/
Lawrence Fensterstock
   
Lawrence Fensterstock
   
Chief Financial Officer &
   
Principal Accounting Officer
 
 
13